Will a great product or solution, a highly qualified team of employees, a management that is investing large sums of money into the organization and state of the art technology alone lead the organization to succeed, grow and sustain itself if the activities are unplanned and done in an impromptu? No, definitely not. It would actually be imprudent and careless of any organization, whether small or big, for-profit or not-for-profit, to go in without a vision, adequate planning and strategizing. This will only lead to losses, deepening vulnerabilities and exposure to unnecessary risks. This process of analyzing, planning and strategizing to meet organizational goals and objectives and preparing for risks is strategic management, in its simplest understanding. A course on strategic management or an advanced leadership development program will help you develop skills required to shine in strategic thinking.
Strategic management is the process by which organizations lay down their vision, goals and framework, chart out a set of strategies to follow to reach their goals in the most effective and efficient manner, roll out the strategies and introduce remedial measures whenever required to reach the strategic vision. It is an ongoing process that requires regular monitoring of the internal and external environment and accordingly, planning and re-planning strategies.
Two Major Objectives
- To enable organizations to identify, understand and leverage their competitive advantage in the market through their core competencies, to forge ahead of their competition as well as gain market dominance.
- To enable organizations to respond effectively to the dynamic external environment.
The Role of Strategic Management
Strategic management lays down the vision, mission, objectives and goals (short-term and long-term) for the organization and provides a scale against which the progress towards these can be measured. By defining the priorities and laying down the strategic framework, it simplifies decision making and enables organizations to stay focused. Strategic management promotes better risk management and minimization of losses. It improves organizational efficiency and effectiveness through meticulous planning, data-driven strategizing, optimal allocation of resources and close monitoring of activities. It provides a broader perspective to employees about their roles and responsibilities and how their work fits into the organization’s plans.
Leadership and Strategic Management
Leadership plays an important role in strategic management. Even the best strategic plans cannot be successfully and effectively executed if there is no strong leadership in the organization. People need to be brought together to work cooperatively in teams and coordinate their activities with one another to reach the strategic intent. Leaders do this. Leaders are effective problem solvers who will analyze the circumstances and accordingly, make changes to the plans and strategies to refocus on reaching predefined goals. Through effective communication, they ensure everyone in the organization understands their role in reaching the goals and will provide feedback to team members who are lacking on the productivity front. If you are a decision-maker in your organization, you will benefit from inculcating leadership skills through an advanced leadership development program.